BMI Archives Entry

BMI Archives Entry

At Expo West this year, Minta Naturally Flavored Mint Soda will be displaying considerable evolution over past year, with key packaging change, expanded array of flavors and further distribution commitment toward spirits house Southern Wines & Spirits.

In mint-bev segment that's drawn considerable # of entries that have failed to ignite, from defunct Snow sodas to now-subsided Metromint still brand, Minta was launched by LA-based wine entrepreneur and former Russian Standard vodka sales exec Jenia Kokotuh, who on trips to France frequently encountered refreshing spritzer made from Monin mint syrup and Perrier. Back in US, he decided to create premixed, natural version sweetened with real sugar, drawing on contacts and experience he'd picked up pushing his fruity sparkling wine, Vertuze, produced from grapes from Calif's Central Coast. (Also drawing inspiration from French mint-soda tradition is another, more energy-inflected brand called Diabolo that's also been presence on Expo circuit.)

Minta was intro'd in PET bottles, which proved inadequate for carbonation level, and therefore segued to Crown's distinctive 10-oz slim can, becoming first US user, ahead of brewer Anheuser-Busch and soft drink giant Pepsi, which has used pkg for Pepsi True extension. Can works both as effective mixer size for on-premise biz and as portion-control pack that keeps calorie total to 100 or less, Jenia figures. Lately, brand is moving back into bottles, adding proprietary conically shaped 12-oz green glass bottle embossed with mint leaves, as image builder for key accounts.

Brand launched with mint-and-lime Original flavor and last spring added Strawberry to support interest in strawberry mojitos. Both clock in at 100 calories per can. New in mix is Lemonade, facilitating mixing of Minta Margaritas while downsizing calorie count to 80. Due next are Apple (green apple) and Blackberry. Among other product moves, brand is now IDed as non-GMO product.

Early this year brand expanded its partnership with Southern Wines & Spirits to include all of Calif and more recently to enter Nev, at time some Las Vegas venues are looking to simplify their mojito programs and are happy to have a quality mixer in 10-oz can. Move puts brand among narrow set of NA brands including Evian and Rockstar, among contacts whom Jenia had honed while at Russian Standard. Tho brand is mainly focused out west so far, it's launched in Fla via broadliner UNFI, foodservice specialist Sysco and small DSD house. It's also playing overseas, in Mexico, Canada and United Arab Emirates, with entry into France and Italy anticipated next month.

Among retailers who've come aboard or authorized brand are Sprouts, Fresh & Easy and Kroger's Smiths banner. Vitamin Shoppe nutrition chain also has taken brand for its Natural Grocers div. Focus for 2015 is chain retailers along with 25-50 key on-premise accounts in each market, with view to building awareness via back bar displays, staff training and inclusion of Minta-based cocktails on menu.  

Austin-based Chameleon Cold-Brew has doubled flavor range of its refrigerated single-serve line, adding to lineup Espresso Coffee, Chicory Coffee and Mexican Coffee (with cinnamon, almond and vanilla). The latest entries in 10-oz glass bottle are breaking exclusively next week in co's expanded Whole Foods territory, now comprising Mid-Atlantic, Fla, South, Midwest, Southwest, Rocky Mtn, Pac NW, Northern Calif and Southern Pacific (SoCal) regions. Intros seem to echo shelf-stable cold-brew rival High Brew, also Austin-based, which already offers Mexican Vanilla and Double Espresso, the latter added after initial launch as concession to consumers who'd prefer less sugar and milk in their cold-brew. Chameleon cofounder Chris Campbell noted, tho, that Mexican flavor was in development before High Brew launch and is viewed as reflecting Chameleon's Tex roots. The new Chameleon items, at $3.69 SRP, will be on view at Expo West show opening Fri in Anaheim, Calif. The single-serve range is more recent addition to the concentrates with co launched 4 years back. Existing RTD line is comprised of Black, Vanilla and Mocha flavors.  

Signaling it's ready to accelerate expansion, cold-pressed-juice maker Red Jacket Orchards has brought aboard Monster, Sparkling Ice and Glaceau vet Gary Prusher as its new dir of corporate sales and distribution. Prusher, who claims to have sold first bottle of Naked Juice, is tasked with broadening grocery availability of line produced at family-owned orchard in NY's Finger Lakes region that started in 1958 as roadside retail stand. Hiring comes on brink of co's launch at Expo West of unusual tea/lemonade entry, Joe's Half 'n' Half, that's fortified with Ecuadoran guayusa, offering natural energy lift to entry. (It's presumed that guayusa is sourced from Brooklyn-based Runa, which supplies tea makers and Mamma Chia with ingredient as part of industrial biz.) Curiously, presence of guayusa wasn't flagged anywhere on front label of bottle proffered at Expo West preview in NYC last night hosted by Trent & Co, tho side panel copy noted presence.  

Are mushrooms about to have their moment? There certainly has been rush of mushroom-based items to market, both in powder form and as actual bevs. Mushroom play called Four Sigma Foods last summer traversed AccelFood accelerator program (BBI, July 10). Here are a couple of other mushroom-based brands.

Mudra Mushroom Melds Reishi, Chaga with Green Tea Seeded now in 30 Whole Foods stores in Northeast, Mudra Mushroom has signed on with natural/gourmet specialist Dora's Naturals for NY area as it looks to build on positioning as world's only bottled mushroom green tea. Brand was created by Jeremy Spang, former production coordinator of Real Housewives of Atlanta and now operator of Conn flotation center called Surrender to the Float, after employee there, Nathan Bryant, noted that friends who harvested chaga and reishi mushrooms to make tea attained similar effect of calm and focus. Chaga is primary adaptogen with purifying, detoxifying and healing properties that have led people in areas like Siberia to brew chaga instead of black tea or coffee. So pair teamed up to launch line containing 1.325 g of Reishi mushroom and Chaga mushroom extract per bottle, produced from 5.8 g of raw mushrooms. They've trademarked term "Meditation in a Bottle" to describe effect. Co has been assisted in brand and sales development by Cascadia Managing Brands, Ramsey, NJ.

Mushroom Matrix Powder Offered in Single-Species, Functional-Blend Packets Another brand, Mushroom Matrix, out of San Diego, is taking more of a superfood approach with its 100% certified-organic mushroom powder. Launched a year ago by disease prevention vet Sandra Carter, line is offered in pair of sublines: single-species Cordyceps, Lion's Mane, Reishi and Turkey Tail entries, and functionally positioned blends under names Beauty, Critical Care, Fit and Immune. All the species are claimed to grown in co's own facility in San Diego, via process devised by mycologist Steven Farrar, co's chief technical officer. They're intended for blending into smoothies, teas, salad dressings, soups or brownies - at Expo West pre-event in NY, they were served blended into hummus. (Taste is more of a challenge in plain water.) They come in 50-serving packets at $24.99. By now, brand is in most Whole Foods divs and looking to go broader. As noted, it will be exhibitor at Natural Products Expo West opening Fri in Anaheim, Calif. Info at MushroomMatrix.com.  

Associated throughout its history with natural sweetened, zero-calorie sodas, LA-based Zevia is taking step to broaden identity with launch of Zevia Tonic Water, intended to crack soda and mixer shelf sets. It employs blend of stevia and monk fruit similar to that employed in its soda lineup. Tho Zevia is by no means first marketer to offer natural tonic, move represents significant tweak to Zevia's strategy, somewhat echoing repositioning lately undertaken by SodaStream, which has veered to new strategy of distancing itself from soda category in favor of identifying itself as a way to make water exciting. "Our mission is to bring great-tasting, zero calorie, naturally sweetened beverages to consumers across America, and the introduction of Zevia Tonic Water is a huge step forward for the mixer category," trumpeted Zevia ceo Paddy Spence. "Historically, tonic water has been full of either empty calories or artificial sweeteners, and now we are offering tonic water drinkers an easy substitute that they can feel good about." New line has launched nationally within Whole Foods chain and via Amazon.com, and will seek broader distribution at upcoming Natural Products Expo West show opening in Anaheim, Calif, on Fri. SRP is $5.99 per 6-pack.  

CSD volume declined 2.5% last 4 wks thru Feb 22 in IRI all-channel data reported by Morgan Stanley's Dara Mohsenian. Avg price for CSDs was up 3.5%, in line with category pricing over last 12 wks. Diet or lower-cal CSDs still struggling as volume slipped 5.8% for 4 wks and 6.2% last 12 wks. Coca-Cola avg price increases still over 4% last 4 and 12 wks in all-outlet data. Coca-Cola volume off 2.3% last 4 wks. PepsiCo volume off 3.1% while avg price was up 3% last 4 wks, down a bit from +3.6% increase last 12 wks. Dr Pepper Snapple volume was off just 0.6% last 4 wks with more modest 2.6% avg price hike. A price drop of 1% still didn't help lift private-label volume in all-outlet channel as volume fell 6.8% last 4 wks.

Monster Up Double-Digits on Flat Pricing; Red Bull Price Bump Energy drink volume surged 7.8% in all-outlet channel last 4 and 12 wks, per IRI. And it wasn't on discounting either: avg price edged up 1.6% last 4 wks. Monster Energy picked up 13% last 4 wks (in line with 12-wk gain pace) with avg price down slightly, -0.2%. Red Bull avg prices rose from +2.7% for 12 wks to +4.1% in latest 4 wks, which slowed volume growth to still-healthy 6%. Rockstar trends improved in last 4 wks, reversing from 2% decline for 12 wks to 2% gain in 4-wk period. Avg prices were up 1% last 4 and 12 wks. Coca-Cola energy brands (NOS, Full Throttle) continue to gain at double-digit pace as switchover to MNST ownership nears. KO brands up 22.8% with avg price gain of 1.9% last 4 wks. PepsiCo (Amp) was down in 5% range last 4 and 12 wks. Avg price up 2.1% in latest month.

Price Hike Saps Powerade Sports drinks volume rose 2.2% last 4 wks vs 3.3% increase last 12 wks as avg price increased accelerated to +5.2% led by KO. Coca-Cola (Powerade) avg prices went up from +3.2% last 12 wks to avg of +4.7% last 4 wks. Volume trends deteriorated further to -6.9% last 4 wks. PepsiCo (Gatorade) volume was up 6.1% on avg price increase of 3.8% last 4 wks. Private-label brands dropped 27.9% with avg price gain of 4.5% for 4 wks.

Water Volume Trends Up Bottled water volume increased 8.1% in all-outlet data last 4 wks, up from 7.7% gain over previous 12 wks. Avg prices remained generally in line, up 1%. PepsiCo had biggest gain in bottled water, up 13.3% last 4 wks (vs 7.6% gain for 12 wks) as its avg price decline was deeper, at -7.1%. Coca-Cola managed to gain double-digits (+10.5%) with 1.3% price increase last 4 wks. Nestle Waters volume and avg prices both were up in 2% range last 4 wks.

Major showcase for natural food, bev and personal care brands, Natural Products Expo West, opens Fri in Anaheim, Calif, and runs thru Sun, at usual haunt, Anaheim Convention Center. Info at ExpoWest.com. BBI hopes to bring readers extensive coverage next week.   

Acai player Zola, which has diversified into other bev categories like coconut water, is making first move into food sector with launch of Organic Dark Chocolate Covered Fruit. New line, debuting at Expo West late this week, combines tropical fruits and juices from around world, in line with co's "Fruits of the World" identity, with smooth dark chocolate from 60% Fair Trade-certified cocoa, initially in Acai-Blueberry, Toasted Coconut and Dragon Fruit flavors. In making move, co is echoing strategy of bev players like Mamma Chia, which has garnered strong response to pouched Chia Squeeze line.  

Big Geyser, biggest unaligned NA house in NY, barely had presence in carbonated brands a coupla years ago, outside boutique soda called Grown Up Soda, or GuS. When essence water Hint launched sparkling sibling, Hint Fizz, Geyser initially spurned it, and brand went crosstown to rival Dora's Naturals for a spell. What a difference 2 years make: in intervening time wholesaler has picked up Talking Rain's surging Sparkling Ice brand, absorbed Hint Fizz into portfolio and launched its own seltzer brand under name Hal's New York. Now comes another addition: venerable regional brand Boylan, which is exiting beer house Manhattan Beer for Geyser over next 30-60 days, Big Geyser confirmed. "We love what's going on in craft beers, and see an opportunity for the craft soda category," explained coo Jerry Reda. "It's a great fit with our portfolio." Tho he declined to state current volume within Big Geyser's service territory, which comprises 5 boros of NY, Long Island and parts of Westchester, Reda believes it could become million-case brand there, within portfolio he likes to define as "healthy sparkling." Note that Big Geyser remains NA-only house, with no alc brands. Brand was founded by pharmacist William Boylan in 1891 and is currently owned by private equity firm Emigrant Capital, whose founder Howard Milstein installed his son Michael to run co after period of turmoil under more seasoned bev execs. By most accounts, younger Milstein has slashed costs and put brand back on more sustainable growth path; co also boasts sibling juice brand, Mash, that's been focus of less activity. Jerry said he sees no conflict between Boylan and smaller GuS brand, which is positioned more as artisanal natural/gourmet play.

Deal is particularly interesting because of recent developments at both Big Geyser and Manhattan Beer. As reported, Geyser recently split with Coca-Cola over Vitaminwater and Smartwater brands it had incubated and managed for decade-plus, with brands formally exiting for Coca-Cola Refreshments this past weekend. (Coke in turn is said to have delegated brands to Dora's Naturals for Whole Foods chain, which dislikes having Coke's red trucks making drops at its stores.) Exit has cost some of Geyser's indie route operators 30% of their overall volume, so Big Geyser is working hard to add new brands like Boylan while intensifying efforts behind such fast-growing brands as Sparkling Ice, Monster Beverage and Essentia Water, which has already popped up around town in some Smartwater-branded coolers. Note that Geyser retains affiliation with Coke on brands such as Honest Tea, Zico and Illy, and has even been rumored to have had conversations about eventually become Coke franchisee in NY area as KO implements US strategy of putting its distribution into indie hands. (Most outside observers consider that a long shot for committed non-union operator like Geyser.)

Meanwhile, Manhattan Beer, which distributes such beers as Coors, Corona and Sam Adams but has had less avid commitment to NAs, is working to complete acquisition of Phoenix Beehive, which distributes Heineken, Brooklyn and Guinness brands and had been expanding commitment to NAs with pickup of Polar Seltzers, Rockstar Energy and Dr Pepper Snapple territory in Hudson Valley region north of NYC. No word yet on future of their NA brands, tho rival distributors in city say some brand owners have approached them to gauge interest. There's no initial indication Boylan migration is connected to this transaction.  

KeVita Sparkling Probiotic Drinks has brought in pair of key sales and marketing execs. Taking reins as marketing vp is Billie Thein, Odwalla and Evolution Fresh vet who fills spot vacated a few months ago by Bill Lange after 8-month run. As reported, former Zico Coconut Water exec Lange recently took marketing reins at retail-based fresh-juice play Pressed Juicery (BBI, Feb 19). Part of Thein's new role will be to dive deeper into consumer motivation part of demand puzzle, co indicated. KeVita also has recruited 17-year Pepsi vet Bob Nakasone as svp sales. Bob had spent last 4 years of Pepsi run as sr dir of biz development, focusing on portfolio of emerging brands including Naked Juice, Izze Sparkling Juice and ONE Coconut Water. Both report to founder/ceo Bill Moses, former vintner.